Aviva plc 2017 Interim Results.
Mark Wilson, Group Chief Executive Officer, said:
"Aviva is delivering. For the fourth year in a row we have grown operating profit, up 11%, reflecting positive performances across Aviva’s businesses world-wide. As a result, we are increasing the interim dividend per share by 13% to 8.4p.
The benefits of our geographic and product diversity are clear and Aviva has numerous sources of growth. In the first half of 2017 we increased sales right across the group and delivered strong growth in operating profit in the UK, Europe and Aviva Investors.
We are growing and investing in the UK. We have grown top line sales and bottom line profit in UK general insurance, pensions, annuities and protection. Our digital business continues to make progress, making insurance simpler and more convenient for customers.
We are getting the basics right. Serving customers well, keeping a tight control on costs and investing in our businesses."
- Operating profit up 11% to £1,465 million (HY16: £1,325 million)
- Operating EPS up 15% to 25.8p (HY16: 22.4p)
- IFRS profit after tax £716 million (HY16: £201million)
- Solvency II coverage ratio of 193%1 (FY16: 189%)
- Capital surplus £11.4 billion1 (FY16: £11.3 billion)
- Operating capital generation £1.1 billion (HY16: £1.2 billion)
- IFRS net asset value per share 412p (FY16: 414p)
- Interim dividend up 13% to 8.4p (HY16: 7.42p)
- Cash remittances up 56% to £1,170 million (HY16: £752 million)
- UK Life special remittance of £315 million, on track towards £1 billion target by end 2018 with £565 million total special to date
- Holding company liquidity £1.7 billion2 (February 2017: £1.8 billion)
- General insurance net written premiums up 11%3 to £4,688 million (HY16: £3,991 million)
- Value of new business up 27%3 to £596 million (HY16: £448 million)
- Aviva Investors fund management operating profit up 45% to £71 million (HY16: £49 million)
- UK Life platform funds up 27% to £16.5 billion (FY16: £13.0 billion)
- Total group assets under management £475 billion (FY16: £450 billion)
- General insurance combined operating ratio 94.5%4 (HY 16: 95.7%)
- Represents the shareholder view. This excludes the contribution to Group Solvency Capital Requirement (SCR) and Group Own Funds of fully ring fenced with-profits funds £3.2 billion (FY16: £2.9 billion) and staff pension schemes in surplus £1.2 billion (FY16: £1.1 billion). Includes an estimated adverse impact of a notional reset of the transitional measure on technical provisions (TMTP) to reflect interest rates at 30 June 2017 £0.5 billion decrease to surplus (FY16: £0.4 billion). Also included are the pro forma impacts of the disposal of the Spanish joint ventures and retail life insurance business (£0.1 billion increase to surplus), the disposal of Friends Provident International Limited (£0.1 billion increase to surplus), and the buy-back of the remaining £0.2 billion share capital out of the £0.3 billion announced on 25 May 2017. The 31 December 2016 Solvency II position includes the pro forma impacts of the disposal of Aviva’s 50% shareholding in Antarius (£0.2 billion increase to surplus) and an anticipated future change to UK tax rules restricting tax relief (£0.4 billion decrease to surplus).
- As at end of July 2017. It excludes amounts set aside to meet our £300 million share repurchase programme.
- In constant currency
- The combined operating ratio is now reported on an earned basis. Comparatives have been realigned to reflect this change.
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Presentation slides: 07:00 hrs BST
Real time media conference call: 07:45 hrs BST
Analyst presentation: 09:00 hrs BST
Live webcast: 09:00 hrs BST